The supply of food: fundamental for survival of the global population, and such a complex subject given the scale of the trade and its multitude of facets. Where do we begin?

In this issue’s Insights, we won’t bombard you with statistics and dollar values; those will come in more detailed articles. Instead, let’s take a moment to reflect on this basic human need and how it influences power, prosperity, and peace. A complex debate in itself, but one that underlines the pivotal nature of our industry’s place in the world.

From ancient trade routes to modern global supply chains

From the earliest days of trading in spices, olive oil, grain and wine, empires have been forged on the ability to acquire sources of staples to feed the masses. Shipping routes around the Mediterranean, along the Silk Road and down the mighty rivers of the Nile, Volga, Rhine and Yangtse have formed the backbone of such political expansion through every historical era.

Geopolitical forces have always significantly distorted supply chains – no more so than those moving foodstuffs – and such forces remain strong in today’s world. Today, the use of food as a political tool and the threat of supply disruptions continue to influence global affairs. The Russia-Ukraine conflict is ample evidence of this. Interruption to the grain trade from Ukraine via the Black Sea ports has severely restricted the world’s wheat supply (the country having exported nearly 40% of the total global resource in the past).  Corn (maize), soybean, and oil seed shortages have also affected many importing countries around the world.

On the plus side, economic development has flourished in many parts as a consequence of the ability to grow produce more cheaply.

Shipping in particular, but also other modes of transport, has facilitated this growth by enabling produce to reach international markets which at times have been or remain desperate for sugar, coffee, bananas, beef, prawns, rice, avocados, and a myriad of other ‘gifts of the earth’ not available in the highly populated markets of industrialised cities.

Size, speed and safety of sea-going vessels has greatly improved over the centuries and advanced technology of today allows for higher load factors and less wastage through temperature-controlled environments in which produce in-transit has a greater guarantee of being edible at the conclusion of long trips. This has led to lower prices for consumers, expanded market opportunities, and increased incomes for growers.

A catalyst of economic growth

Beneficiaries of such wealth enablement are numerous around the world. Indonesia with vast palm oil (not entirely used in food admittedly) plantations; Chile with its diverse climates perfect for a variety of soft fruits; South American cattle ranchers; West African cocoa farmers; and Vietnamese fishermen have all benefitted. These opportunities have also boosted the economies of these regions.

As the interwoven structure of food trades across the world becomes evermore entwined there are modern day concerns. The vulnerability of lengthy and trans-national supply chains has been spoken of but with new growing areas opening up for some commodities, food safety issues must also be carefully regulated, and the necessary certification and checks assured.

Balancing contemporary concerns

However, environmental damage concerns, such as the amount of greenhouse gas emissions from long-haul journeys, are perhaps the most prioritised by an environmentally conscious younger generation. The amount of greenhouse gas emissions from long-haul journeys are much researched, written about, and reacted to by a responsible transport industry. More detail on the relative ‘greenness’ of various modes and advancements in technology to combat levels of emissions are described in our following articles.

Such consumer concerns are becoming stronger, and along with the desire to have shorter, more secure means of supply means a growing trend towards more localised sourcing. This might only be a relative weak effect; when the economies of large-scale farming result in significant price differences (even accounting for transport costs) when the product hits the supermarket shelf next to local produce, shoppers may not dramatically alter their choices.

Large scale, economic agricultural production may come with an environment cost as well.  Greater use of pesticides and fertilisers to increase yields, deforestation and the inappropriate use of certain soil and botanical environments must be guarded against when growers are tempted by the lure of short-term profit. As consumers become more aware, they seek transparency in the way their food is grown, packaged, traded, and transported.

Looking ahead in the world of food supply

These thoughts and observations offer a glimpse into the dynamic and intriguing world of food supply, and we hope they have piqued your interest as we delve into more details in other articles. What are bulk commodities and how are they different from deep-frozen or chilled goods? How are delicate perishable fruits shipped from across the world, as ripe as you’d like? As you do so, and as our other stories unfold, remember the crucial balance that we must maintain in feeding a fast-expanding global population.